The U.S. dollar index stayed close to its highest level of the past week on Friday, trading at 99.081 after a 0.3% gain the day before. The strength came as investors sought safety amid renewed concerns over energy supply disruptions in the Middle East.

Energy market pressure

Brent crude futures rose 1.2% to $108.96 a barrel, marking a sixth consecutive day of gains. The rally followed reports that Iran‑aligned Houthi forces seized Yemen’s port city of Mocha and advanced along the Red Sea coast, heightening fears of further supply shocks.

Currency movements

Against the yen, the dollar was as much as 0.1% firmer at 154.615 yen. The euro also strengthened, reaching as high as 179.49 yen after the European Central Bank raised rates for the second time this year. However, the yen recovered some ground after Japanese wholesale inflation data showed a 7.6% year‑over‑year rise in August, supporting expectations of a rate hike this month.

The Australian dollar was flat at $0.7160, while the New Zealand kiwi edged up 0.1% to $0.5805. The euro and British pound held steady against the dollar at $1.1613 and $1.3510 respectively.

Fed outlook

Markets are eyeing U.S. CPI data later on Friday, one of the last major releases before the Federal Reserve’s meeting next week. Fed funds futures now price a 71.3% chance of a 25‑basis‑point rate hike at the September 16 meeting, up from 61.2% the previous day.

U.S. Treasury yields rose as the Treasury tripled the size of its long‑dated bond repurchase program. The 10‑year Treasury yield increased 2.3 basis points to 4.965%, and bond volatility hit a one‑month high.

Analyst commentary

Barclays analysts noted that 10‑year yields are approaching 5% and that “bonds are not cheap yet and catalysts for a rally do not appear imminent.”

Cryptocurrency market

Bitcoin slipped 0.8% to $76,624.32, while ether fell a similar amount to $2,443.18.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.